Report

State-Owned Enterprises in the Russian Federation : Employment Practices, Labor Markets, and Firm Performance

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collection.link.45
https://openknowledge.worldbank.org/handle/10986/2153
collection.name.45
Other Social Protection Study
dc.contributor.author
World Bank Group
dc.date.accessioned
2019-07-16T16:49:42Z
dc.date.available
2019-07-16T16:49:42Z
dc.date.issued
2019-06-18
dc.date.lastModified
2021-05-25T09:26:06Z
dc.description.abstract
Low productivity and the competitiveness of Russian firms have been among Russia's primary economic challenges over the past decade. The Government of Russia (GoR) has made boosting productivity a policy priority and since 2012 has rolled out several visible policy initiatives to strengthen employment practices in firms to raise their productivity and positive spillovers, including the 2012 Plan for Raising the Productivity of Companies, the 2018-2024 National Project on Labor Productivity, and 2018-2019 National Plan for Competition Development. The objective of this report is to contribute to this productivity agenda by analyzing the employment practices of state-owned enterprises (SOEs), their implications for labor supply and internal firm capabilities, and the influence of state policy. SOEs contribute a significant share of output and employment in Russia's economy and academic recent research shows that they have lower productivity than private sector firms. The implications of SOE employment practices—compensation and management—on overall productivity however, has not been investigated, a gap that this report aims to fill by analyzing the following questions: What are SOE employment practices and how do they compare to international and private sector benchmarks? How do SOE employment practices, particularly compensation, affect allocation of labor across firms? How do SOE compensation and management practices shape their internal capabilities? How does government financial and non-financial support to SOEs influence these employment practices? Taking the level and form of government participation in the economy as a given, the report focuses primarily on the sector's current practices, and how government policies towards the sector can be improved to boost SOE performance and positive spillovers. We explore these questions using five Russian microlevel datasets, including worker and firm surveys and a large firm register. The report utilizes a taxonomy of SOEs that includes state SOEs which have 100 percent government ownership, and mixed SOEs which have some share of state ownership that is less than 100 percent. The report finds that Russian SOEs pay an overall compensation premium and that this premium contributes to labor shortages in the private sector. While overall the SOE sector has a small wage penalty, wage differentials with the private sector vary by type and size of the SOEs. Mixed SOEs pay a small wage premium over the private sector while state SOEs have a small wage penalty. Both types of SOEs pay a wage premium in competitive settings. SOEs have an overall compensation premium as they provide more generous benefits like paid vacations, maternity leave, and training than private sector firms.
en
dc.identifier
http://documents.worldbank.org/curated/en/246661562074950759/State-Owned-Enterprises-in-the-Russian-Federation-Employment-Practices-Labor-Markets-and-Firm-Performance
dc.identifier.uri
http://hdl.handle.net/10986/32098
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
STATE-OWNED ENTERPRISES
dc.subject
EMPLOYMENT PRACTICE
dc.subject
PUBLIC SECTOR WAGE
dc.subject
WAGE PREMIUM
dc.subject
CORPORATE GOVERNANCE
dc.subject
LABOR MARKET
dc.subject
FIRM PRODUCTIVITY
dc.subject
FIRM PERFORMANCE
dc.subject
PUBLIC SECTOR EMPLOYMENT
dc.subject
COMPENSATION
dc.subject
SUBSIDIES
dc.subject
MANAGEMENT PRACTICES
dc.subject
PUBLIC SECTOR REFORM
dc.title
State-Owned Enterprises in the Russian Federation
en
dc.title.subtitle
Employment Practices, Labor Markets, and Firm Performance
en
dc.type
Report
en
okr.crossref.title
State-Owned Enterprises in the Russian Federation
okr.date.disclosure
2019-07-02
okr.doctype
Economic & Sector Work
okr.doctype
Economic & Sector Work :: Other Social Protection Study
okr.docurl
http://documents.worldbank.org/curated/en/246661562074950759/State-Owned-Enterprises-in-the-Russian-Federation-Employment-Practices-Labor-Markets-and-Firm-Performance
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/32098
okr.identifier.externaldocumentum
090224b086e1478f_1_0
okr.identifier.internaldocumentum
31194613
okr.identifier.report
138650
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/246661562074950759/pdf/State-Owned-Enterprises-in-the-Russian-Federation-Employment-Practices-Labor-Markets-and-Firm-Performance.pdf
en
okr.region.administrative
Europe and Central Asia
okr.region.country
Russian Federation
okr.topic
Public Sector Development :: State Owned Enterprise Reform
okr.topic
Social Protections and Labor :: Employment and Unemployment
okr.topic
Social Protections and Labor :: Labor Markets
okr.topic
Social Protections and Labor :: Labor Policies
okr.topic
Social Protections and Labor :: Wages, Compensation & Benefits
okr.topic
Public Sector Development :: Public Sector Administrative and Civil Service Reform
okr.unit
GGOEW

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